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Australia's Woodside, Germany's RWE sign supply deal using Corpus Christi LNG

Woodside Energy Ltd. signed a mid-term LNG supply agreement with the European utility RWE Supply & Trading GmbH, with the primary source from volumes Woodside has contracted from the Corpus Christi LNG project in Texas, the Australian oil and gas company said.

The volumes will be supplied on an f.o.b. basis, from October-December 2020 until December 2022.

This binding deal builds on a sale arrangement both companies signed in October 2017 for the delivery of up to 12 cargoes between April 2018 and March 2020, said Reinhardt Matisons, Woodside's executive vice president for marketing, trading and shipping.

A Woodside spokeswoman declined to comment on the volume of the new deal.

In 2015, Woodside, which produces LNG from North West Shelf, Pluto LNG and Wheatstone LNG in Western Australia, secured 0.85 million metric tons per annum of LNG from Corpus Christi, a project led by Cheniere Energy Inc.

The deal was for the LNG to be purchased on an f.o.b. basis at 115% of the monthly Henry Hub price plus $3.50/MMBtu.

The volumes will be secured from the facility's second train, which is scheduled to be completed in the second half of 2019.

Matisons said the RWE deal is a further demonstration of Woodside's diversification of its transaction activity across both the Asia-Pacific and Atlantic LNG markets.

RWE's chief commercial officer for supply and trading Andree Stracke said it's a key building block in the European company's development of its flexible LNG portfolio.

In September, Woodside also signed a flexible nonbinding heads of agreement with the German utility Uniper for the supply of up to 600,000 mtpa of LNG over four years, commencing in 2019.

Nathan Richardson and Abache Abreu are reporters for S&P Global Platts, which, like S&P Global Market Intelligence, is owned by S&P Global Inc.